Internal billings trigger M&A damages; GPCM prevails
A case in Delaware Chancery Court shows that the court will not award damages from an M&A transaction gone bad when the calculations are based on speculative lost synergies.
NetApp, Inc. v. Cinelli
The defendant hid improper recording of revenue from use of internal software in unaudited financial statements that were represented to be GAAP-compliant. The defendant was held to have breached the merger/sale contract in a manner that resulted in fraud. The plaintiff was awarded damages. The court accepted the expert’s GPCM as the most “responsible estimate” of the private company’s value as it was presented to the plaintiff.
Seller Breached Terms of Merger Agreement Including That Statements Were GAAP-Compliant—Expert’s GPCM Accepted
The defendant hid improper recording of revenue from use of internal software in unaudited financial statements that were represented to be GAAP-compliant. The defendant was held to have breached the merger/sale contract in a manner that resulted in fraud. The plaintiff was awarded damages. The court accepted the expert’s GPCM as the most “responsible estimate” of the private company’s value as it was presented to the plaintiff.
BV News and Trends March 2023
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends January 2023
A monthly roundup of key developments of interest to business valuation experts.
Accounting standards needed for crypto, urges paper
“We recommend that accounting regulators undertake standard-setting specifically for cryptocurrencies instead of allowing companies to choose which existing standard to apply and how to do so,” says a new paper, “Financial Reporting for Cryptocurrency.”
New FASB rules on crypto coming in first half of 2023
Under proposed accounting rules, fungible tokens will be measured at fair value as opposed to the cost (less impairment) model.
Leases Pieces—Digesting the New Accounting Standards and Business Valuation Impacts
The mandatory adoption of ASC 842 (Leases) poses several unique challenges for business valuation experts and other financial service providers alike. Listen in as experts from Adamy Valuation and BDO review the new standard, break down its accounting implications and presentation in GAAP financial statements, and identify methods that ensure these changes are properly addressed in a valuation context.
BV News and Trends September 2022
A monthly roundup of key developments of interest to business valuation experts.
Global BV News and Trends September 2022
Business valuation news from a global perspective.
BV News and Trends August 2022
A monthly roundup of key developments of interest to business valuation experts.
Global BV News and Trends August 2022
Business valuation news from a global perspective.
Global BV News: New edition released of Business Analysis and Valuation: IFRS
Cengage has released the 6th edition of Business Analysis and Valuation: IFRS Edition in the educational market.
Stout releases guide to ASC 842
Accounting Standard Codification (ASC) 842 is the new lease standard, and Stout has released a guide designed to give practical guidance and key takeaways from their experience with both public- and private-company adoptions.
Business Combinations and Fair Value for Financial Reporting
Are you confused by business combinations? Join William Kennedy for this engaging session covering GAAP fair value standards and their application in business combinations. Hear a discussion of the nuances of the GAAP fair value standard and history of how it was developed as part of the GAAP-IFRS convergence project. Also learn how the valuation approaches and methods used in fair value assessment differ from valuation approaches used in a fair market value appraisal.
Power Panel: Live Expert Answers for Today's Tough BV Questions
What is going on next in BV? While we don’t have a crystal ball, we do have the next best thing. Thought leaders Jay Fishman, Neil Beaton, Ray Rath, and Stacy Collins on hand to answer your questions on what is changing, trends within the profession, and thought processes behind tackling tough problems. What’s more, if you send in a video of yourself asking the question, you will get free admission to the session. Use ...
Valuation of Senior Living and Post-Acute Providers
Join Jed Cheney to learn the considerations when valuing senior living and post-acute healthcare providers ranging from assisted living and memory care to skilled nursing and home health/hospice providers. With insights on the industry at large and government reimbursement considerations along with environmental considerations in the senior living and post-acute provider operating environment, this webinar will focus on various value drivers impacting these providers that should be considered. The impacts of COVID-19 have been significant ...
BVU News and Trends November 2020
A monthly roundup of key developments of interest to business valuation experts.
Updated Finance and Accounting for Lawyers now available
An introductory text for attorneys working with accounting and the business valuation world has been revised.
BVLaw Case Update
Join Jim Alerding, a veteran valuator, and Sylvia Golden, BVR’s legal editor, for a discussion of some of the most consequential recent valuation decisions. This selection of state and federal cases includes two key state court rulings on the use of discounts in valuing minority interests in buyback situations, a state court decision on the admissibility of calculations of value in divorce proceedings, an expansive statutory appraisal ruling involving a public company from a North ...
BVU News and Trends April 2020
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends April 2020
Business valuation news from a global perspective.
Explanations of all new FASB guidance in one spot
A convenient tool for understanding all of the new financial reporting standards from the FASB is available on the organization’s own website, points out an article in the Tennessee CPA Journal (January/February 2020).
Global BV News: New edition of book on valuation under IFRS
The third edition of Company Valuation Under IFRS addresses the implications for analysis, modelling, and valuation of key aspects of the International Financial Reporting Standards (IFRS), and it describes the key differences between IFRS and U.S. GAAP treatments and their implications for the analysis.
New lease rules jolt stock returns
Stock valuations took a one-time shock in the first quarter of 2019, possibly because of the new lease accounting standards from the Financial Accounting Standards Board, according to an article in the Wall Street Journal.